The value of the barrier-free toll road now stands at around $32 billion
SNC-Lavalin Group Inc. will pocket about $2.8 billion after selling a 10 per cent stake in Highway 407, but the price is slightly less than analysts were expecting and is unlikely to do much to turn around the fortunes of the Montreal-based global engineering firm.
SNC filed documents with the Federal Court of Appeal on Friday, in which it argued the firm should get a previously denied shot at negotiating such an agreement because of new facts that emerged from testimony before a parliamentary committee looking into the matter. A lower court last month tossed out the company’s bid for judicial review of the 2018 decision by the Director of Public Prosecutions that SNC would not be invited to negotiate a remediation, or deferred prosecution, agreement.
“This is a truly unique and exceptional asset that we believe has been undervalued by the market for many years,” Neil Bruce, SNC’s chief executive, said in a statement. Through this transaction, we are able to benefit from crystallizing some of this value, while retaining an interest in a successful Canadian infrastructure asset that we are proud to have helped build
The 407 transaction is expected to be completed within about two months, and the proceeds will help shore up the balance sheet through measures including debt repayment and a possible share buyback, analysts said. About $600 million is designated to pay down a portion of a loan extended by the Caisse de depot et placement du Quebec.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SNC-Lavalin sells stake in Ontario’s Highway 407 to OMERS for $3.25-billionSNC says some of the proceeds will be used to repay part of a loan from Caisse de dépôt et placement du Québec; company still obliged to maintain Quebec HQ
Read more »
Troubled SNC-Lavalin to net $3.25B after partial exit from 407 highwayThe asset that has been undervalued by the market for years, says chief executive officer Neil Bruce
Read more »
Posthaste April 5: Canada’s big jobs miss, SNC sells 407 stake and … marijuana growing painsStuff you need to know this morning
Read more »
Evening Update: BoC’s Stephen Poloz quiets rumours of an interest rate cut; Ontario university adds coding to its teacher-training programAlso: The latest on Wilson-Raybould, the PM and SNC-Lavalin
Read more »
Read Wilson-Raybould’s Letter To Liberals Before Her Expulsion From Caucus“I was trying to help protect the Prime Minister and the government from a horrible mess”
Read more »
Read Wilson-Raybould’s Letter To Liberals Mulling Her Expulsion From CaucusRead Wilson-Raybould’s letter to Liberals mulling her expulsion from caucus
Read more »